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29 October 2021
Bank BTPN Net Profit Up 32% yoy in January-September 2021 on Track with Business Strategy
Jakarta, October 28 2021 – PT Bank BTPN Tbk (“Bank BTPN”) booked strong growth in net profit in January-September 2021 from last year, thanks to its strategy to lower interest expenses and keep cost of credit in check.
Bank BTPN’s net profit attributable to owners of the parent hit Rp2.05 trillion in January-September 2021, up 32% year-on-year (yoy), from Rp1.54 trillion a year before.
“Bank BTPN has reported good results from time to time, supported by improvement in economic conditions, increased optimism among public members towards economic recovery, and Bank BTPN’s strategy to stay prudent in adapting during the era of new normal,” said President Director Ongki Wanadjati Dana.
The increase in net profit was supported by interest expenses that fell 39% yoy from Rp4.54 trillion to Rp2.76 trillion, as well as cost of credit that dropped 19% yoy from Rp1.95 trillion to Rp1.59 trillion due to adjustment of PSAK 71 accounting standards.
The bank also posted a 15%-yoy increase in net interest income from Rp7,93 trillion to Rp8,31 trillion. It booked a 11%-yoy rise in other operating income from Rp1.31 trillion to Rp1.45 trillion, thanks to higher fee-based income that was raised from, among other sources, sales of investment products.
Bank BTPN managed to keep operating expenses relatively stable from Januar-September last year at around Rp5.1 trillion.
Bank BTPN interest expenses were lower in line with the downtrend of Bank Indonesia’s policy rate and the rise of Current Account Saving Account (CASA) balance and ratio. Bank Indonesia has maintained its benchmark rate at 3.50% since February 2021, after gradually cutting it down from the level in July 2019.
A rise in CASA balance and ratio, as well as a drop in cost of fund in rupiah-denominated term deposit, also caused Bank BTPN’s overall cost of rupiah-denominated fund to drop to 3.5% at the end of September 2021, from 5.3% in the same period in 2020.
Bank BTPN’s CASA balance rose 37% to Rp35.57 trillion on September 30, 2021, from Rp25.95 trillion in corresponding period last year. Ratio of CASA to total third-party deposits also increased to 34% from 26%.
Growth in CASA balance also emanated from Digital Banking, one of Bank BTPN’s business lines. As one of the pioneers in digital banking development in Indonesia, Bank BTPN continued increasing the reliability of Jenius, a life-finance solution application for digital-savvy customers, amid challenges during the COVID-19 pandemic. The number of Jenius users grew 22.3% yoy to 3.51 million and Jenius’s third-party deposits rose 20.5% yoy to Rp14.66 trillion at the end of September 2021.
Bank BTPN raised third-party deposits in correspondence to funding and liquidity needs. In total, third-party deposits increased by 2% yoy to Rp103.23 trillion on September 30, 2021, from Rp100.80 trillion.
Loan disbursement dropped 7% yoy to Rp137.66 trillion at the end of September 2021, from Rp148.81 trillion a year ago, as demand was yet to pick up to levels before the pandemic. The drop in loan disbursement consequently caused a 2%-yoy fall in assets to Rp183.02 trillion, from Rp186.90 trillion.
“Apart from a year-to-year fall in loan disbursement, it actually showed growth quarterly at the end of the third quarter. Loan disbursement rose 1.5% quarter-to-quarter, and this is actually a good sign that there was an increase in people’s activities,” said Ongki.
Bank BTPN continued to maintain customers’ credit quality at a healthy level, as shown in gross NPL ratio that stood at 1.56% at the end of September 2021, lower than an average 3.35% reported for the whole banking industry at the end of August 2021.
In addition to third-party deposits, Bank BTPN also has diversified funding sources, including loan facilities from SMBC. Liquidity and funding ratios were in good shape, with liquidity coverage ratio (LCR) booked at 224.7% dan net stable funding ratio (NSFR) at 114.7% on September 30, 2021. Capital adequacy ratio (CAR) stood strong at 25.6%.
For further information please contact:
PT Bank BTPN Tbk
Andrie Darusman – Daya & Corporate Communications Head
Email: [email protected] or [email protected]
PT Bank BTPN Tbk (Bank BTPN) is a foreign exchange bank and is a merger between PT Bank Tabungan Pensiunan Nasional Tbk (BTPN) and PT Bank Sumitomo Mitsui Indonesia (SMBCI) in February 2019. Bank BTPN serves various segments in the banking industry, from retail to corporate customers, including retirees, micro-, small- and medium-sized enterprises (MSME) and productive, pre-prosperous communities; the consuming class segment; and the corporate segment. Bank BTPN provides the services through business units, such as BTPN Sinaya—a business unit for wealth management, BTPN Purna Bakti—a business serving retirees, BTPN Micro Business—a business unit serving micro businesses, BTPN SME—a business serving small- and medium-sized enterprises, Jenius—a digital banking platform serving the consuming class segment, and the corporate business unit, which serves national, multinational, and Japanese companies. Bank BTPN also has a subsidiary, namely PT Bank BTPN Syariah Tbk, which focuses on serving customers from the mass market. Bank BTPN also regularly provides training sessions and information for customers through the Daya Program—a sustainable and measurable empowerment program—to improve customers’ capacity so they can grow and have a chance to live better.